Lib Dems plan to scrap Treasury for new department for growth'

"The Liberal Democrats would replace the Treasury and Department for Business with a new department for growth, with the aim of creating a more cohesive and long-term economic vision for the UK, the party has said in a major policy move. Announcing the plan at a speech in London, Daisy Cooper, the Lib Dems' deputy leader and Treasury spokesperson, said a Treasury brain mindset based around short-term fiscal imperatives was dragging the country down. As part of efforts to rebalance the economy away from the dominance of London, the new department would be based in Birmingham, Cooper said."

"She blamed this in part on a lack of economic strategy under Keir Starmer, but also on a short-termist approach to growth. For too long, political parties without a vision for growth have allowed the Treasury tail to wag the political dog, said Cooper, citing policies such as the decision, later reversed, to cut back the eligibility for the winter fuel payment as a short-term Treasury tax-grab driven by the desire for immediate bankable cuts."

The Liberal Democrats would replace the Treasury and the Department for Business with a new Department for Growth to create a cohesive, long-term economic vision focused on rebalancing the UK economy. The new department would be based in Birmingham to reduce London's dominance and shift economic policymaking away from a London-centric model. The Treasury is described as operating with a short-term fiscal mindset that contributes to low growth, illustrated by the decision to cut winter fuel payment eligibility that was later reversed. The proposal seeks to split fiscal, economic, and spending responsibilities to better align policy with business and trade and to appeal to moderates across parties.

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